What is TON? Part 1

Crypto users are always on the lookout for the next platform to add to their portfolio. But, knowledge should come before investment. Here at AltcoinBuzz, we shine the light on different projects in the crypto space and leave you to make the ultimate decision.

For this piece, we’ll look at TON and its native token – TONcoin.

What is TON?

TON simply stands The Open Network. TON is a high-performance, decentralized, layer-1 blockchain. The platform has been around for a couple of years. Telegram launched TON in 2018 to onboard billions of users.

The Open Network was also built for quick, energy-friendly, and inexpensive blockchain transactions. TON operates to meet the daily needs of its users.

Aside from offering ultra-fast transactions, and easy-to-use apps, TON prioritizes flexibility and scalability. Formerly known as Gram, The Open Network focuses on meeting the needs of millions of everyday crypto users.

TON’s architecture allows users to easily send, store and receive cryptocurrency. The platform’s flexible design is one of its best features. TON can effectively validate and process millions of transactions per second by supporting dynamic sharding and workchains. In other words, TON’s adaptable architecture enables continual growth without any performance degradation.

The Open Network’s ecosystem was created to sustain billions of daily visitors, unlike the majority of other blockchain ecosystems. It uses sharding, which uses different subnetworks, or shards, on the same blockchain to complete and settle transactions quickly. Each shard serves a distinct function and attempts to avoid building up massive backlogs of unverified blocks. Sharding is the tech you keep hearing about that will ‘save’ Ethereum and finally let it scale.

TONcoin’s Use Cases

TON is a proof of stake (PoS) network. So, the TONcoin is used to validate each transaction. TONcoin is also used to reward validators. In summary, TONcoin is used for

  • transaction fees,
  • securing the blockchain through staking,
  • deciding how the network develops,
  • settling payments,
  • Plays a role in TON’s on-chain governance.

There are two main ways to earn TONcoin

  1. become a validator
  2. Become a nominator.

Let’s talk about becoming a TON validator

How to be a TON Validator

TON is a PoS network. So, validators profit by validating transactions. To become a validator, you must first have high-performance hardware, then high-speed internet. And finally, you must stake Toncoin. You have to stake about 600,000 TONcoins to become a validator. TONcoin currently trades at $2.46.

Although these requirements may seem excessive, they guard the network against potential system manipulation by hackers. If someone tries to scam, they can lose part or all of their stake.

We’ve got the second part of the series.

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